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Management
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Topic:

Porter’s Five Forces Analysis on Publix Stores

Essay Instructions:

Please read the instructions carefully. Add section titles in bold font, to help you focus your writing, and so that your instructor can ensure that you covered everything. See the rubric below for grading. There is a template attached for you to follow: Case Analysis - Part 3 Template(see attached)
Evaluation:
Your evaluation will include the I/O Model of Above Average returns and five forces model to isolate particular forces in the external environment that are potential threats. Porter identified these five factors that are major threats because they affect how much profit organizations competing within the same industry can expect to make. Write at least full one paragraph for each factor, explaining how it affects the company's chance of making a profit.
The level of rivalry among organizations in an industry. The more that companies compete against one another for customers, by lowering the prices of their products or by increasing advertising-the lower is the level of industry profits (low prices mean less profit). (1 paragraph)
The potential for entry into an industry. The easier it is for companies to enter an industry because, for example, barriers to entry, such as brand loyalty, are low the more likely it is for industry prices and therefore industry profits to be low. (1 paragraph)
The power of suppliers. If there are only a few suppliers of an important input, then suppliers can drive up the price of that input, and expensive inputs result in lower profits for the producer. (1 paragraph)
The power of customers. If only a few large customers are available to buy an industry’s output, they can bargain to drive down the price of that output. As a result, producers make lower profits. (1 paragraph)
The threat of substitute products. Often, the output of one industry is a substitute for the output of another industry (plastic may be a substitute for steel in some applications, for example; bottled water is a substitute for cola). Companies that produce a product with a known substitute cannot demand high prices for their products, and this constraint keeps their profits low. (1 paragraph)
Porter argued that when managers analyze opportunities and threats they should pay particular attention to these five forces because they are the major threats than an organization will encounter. It is the job of managers to formulate strategies to counter these threats and generate profits. (Jones and George)
Here is a quick and helpful video on Porter's Five Forces to get your thought process started and organize your writing:
Porter's Five Forces https://youtu(dot)be/_IaBZmB09RE
Recommendations:
This is where you would list your recommendations. Recommendations would be based on your research and on your findings when you did the SWOT Analysis in Part 2. This is where the company needs improvement or can take advantage of changing business conditions. These are your recommendations; state no more than three. NEVER use first ("I") or second person ("you") in a case analysis. Use the third person ("they"). (1 page)
Conclusion:
Every paper needs a conclusion. This is a summary of all three parts of your Case Analysis, including the Introduction (Part 1) and SWOT (Part 2). . The conclusion should revisit the key points or issues that you are trying to relate to the reader. Emphasize the positive by emphasizing the strengths and opportunities that have already been discussed. (1 page)
Don't forget references! How to Let Word Do Your References and Citations

Essay Sample Content Preview:

Case Analysis - Part 3 – Introduction and Strategy: Publix Stores
Student’s Name:
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Part 3 – Introduction and Strategy: Publix Stores
Evaluation
Porter’s Five Forces is an essential framework for analyzing the competitive position of a company. The model was by Michael Porter to help business organizations to assess and evaluate their competitive situation and strength.Porter’s five forces framework is based on the idea that a corporation’s attractiveness to market and competitive intensity is determined by five forces: rivalry among the existing competitors, consumers’ bargaining power, suppliers’ power, threat of new entrants, and availability of substitute products (Bruijl, 2018). Publix stores need to focus on Porter’s five forces to determine their competitive position.
Competitive rivalry profoundly impacts market dynamics, including pricing strategies, advertising strategies, and the introduction of new products. The levels of competition determine whether or not a company will make profits. The market attractiveness is reduced by many competitors offering similar products in the marketplace (Perera, 2020). The competition also results in a drop in prices and low revenue for an organization. The threat of new entrants affects the rate of investments costs of raw materials and products. Barriers to market entry, for instance, restrictive government policies, substantial initial capital, economies of scale, and unequal access to the supply chain, make it difficult for new organizations to offer similar products (Bruijl, 2018). Supplier power to manipulate prices of raw materials also impacts market dynamics. Greater supplier bargaining power is detrimental to business success because it makes it easier to increase costs. Consequently, producers’ revenues are affected due to increased prices. The power of buyers is determined by their preferences, needs, and ability to purchase the products offered by a company. The last element in Porter’s five factors is the threat of substitution. If products provided by an organization have a substitute, customers are likely to switch to the alternative offer in case of a price increase.
The Level of Rivalry
The retail industry in which Publix Stores operate has very few formidable competitors (Harrison, 2018). Most of the competitors are large and cannot act in the retail industry without being noticed by Publix Stores. Competitive rivalry is, therefore, a weaker force in the Retail Industry. The US retail industry also has very few competitors that have significant market shares, like Publix Stores. Publix Stores’ rivals include Wal-Mart Whole Foods Market, Kroger, Harris Teeter, and Target. The products offered by the company are highly differentiated, making it difficult for any retail company to have manipulated prices. The unique offers also empower Publix Stores to attract many customers. For instance, Publix Store primarily offers highly differentiated groceries and beverages, while Wal-Mart offers several food categories with less differentiated grocery products. The retail industry is characterized by ...
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